The State Consumer Disputes Redressal Commission (SCDRC) in three different orders has directed the same developer to refund Rs2.5 to Rs3 lakh with 9% interest to different buyers who had paid to book flats that did not even end up being constructed. The Commission also directed Rs35,000 be paid towards mental agony and litigation cost in each of the three orders.
The orders were passed on three different complaints but against the same parties – Shree Shubh Enterprise and firm partners Uday Surve and Govind Somani. The first complaint was made by Shashikant Gandhi and his nephew Prashant Desai, the second by Tejas Sashikant Gandhi, Alka Sashikant Gandhi, Sushma Joshi and Rashmi Gujrathi, and the third by Alka and Tejas Gandhi. The complainants were all relatives of Shashikant who knew Somani. Somani worked as a broker for Shashikant when he was a developer himself.
Somani approached Sashikant and informed him that he could get a bigger flat in an upcoming project 'Astoria 1' in Borivali (East) at a reasonable price. Shashikant, his family and extended family members paid booking amounts for three flats at different periods from 2005 to 2010. Two flats measuring 1,147 sq ft were priced at Rs68.82 lakh each while one measuring 1,100 sq ft cost Rs55 lakh. Although the money was encashed by Shubh, it did not execute the agreement and maintained throughout that till requisite permissions are in place, they will not be able to execute the agreement for sale with them. As the project was delayed, it promised interest at the rate of 36% on a quarterly basis to the complainants.
However, when follow-ups were made on what was promised, the developers gave evasive replies that led to complaints being filed. An ex-parte order was passed as they did not stand before the Commission to present their side. During the hearing, the commission observed that the developers refused to refund the booking amount of the complainants. It added that hard earned money of the complainants in the form of booking amount was used by the opponents for years, and that the complainants were deprived of their dream house and instead made to run from pillar to post for a refund of their booking amount.
